Professional Documents
Culture Documents
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CHAPTER – 1
process and people, with the major concern for satisfying customers and improving the
organizational performance. It involves the proper coordination of work processes which allows
for continuous improvement in all business units with the aim of meeting or surpassing
the aim of reducing waste and rework to reduce cost and increase efficiency in production.
TQM is applicable to any organization irrespective of size, and motives, even the public sector
organization are fast adopting the ideology in order to make them effective in meeting public
demands. However, the adoption of the ideology by most organization has been hampered due to
their noncompliance with the procedures and principles of TQM implementation. While some
organization, run TQM like a program which they expect to function and perform the magic all
by itself, others have used a halfhearted approach to it, by using some bits and pieces of the
principles. This has accounted for the failure of most organization in meeting up to their expected
target from implementing this ideology. There is a need to continue to buttress the benefits that
such as India where the adoption of these principles seems farfetched to organizations. The
Indian Aviation industry gives us a true picture of the shortcomings of organizations in their
quest to make profit at the expense of quality. With the spate of changes going on in the country
due to government reforms, the nature of competition seems to be changing from what it used to
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be. The influx of foreign and local investors into different sectors of the economy has given rise
to intense competition, thus the need for organizations to look internally into their operational
The problems of poor services have consistently characterized the Indian aviation industry, with
the different stakeholders accusing one another for the inefficiency in service delivery. Even with
new investors entering the sector and adopting the TQM ideology, which have no doubt given the
industry a face lift, there persists an array of complaints by passengers making use of these
services. This research aims to find out the quality level of Air India and the problems with the
implementation of TQM and will assessthe effect of TQM implementation on the airline industry.
The deregulation of the airline industry in most part of the world marked the beginning of a new
realm of competition in the industry. The deregulation ensured that airlines set fares and service
levels based on the market situation. In trying to gain competitive advantage, airlines try to
outshine their competitors by providing quality services that meets or exceeds the expectation of
customers. Thus, customer satisfaction in the airline industry is never ending as they face
numerous challenges and competition daily. This makes Quality management critical to the
airlines as they strive to continuously improve their services to meet customers’ expectation.
Airlines paying strict attention to service quality will be differentiated fromothers and will in the
course of doing this gain competitive advantage. Although it’s beenargued that price is a major
determinant of airline choice by customers and most airline would rather compete on it than on
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service quality. However, not managing quality will mean no added and assuring value to the
airlines.
The use of a strategic approach to quality management by airlines will therefore improve their
competitiveness. This approach ensures that airlines remain customer focused. TQM enables
innovativeness as it empowers employees to take decisions that affect their job. For the airlines to
be innovative in its offerings, it requires a flexible structure which permits cooperation between
different functions.
The implementation of TQM involves the buying in of different units involved in the process of
service delivery into the ideologyand practices of quality management, which should be
championed by the leadership of the airlines. That is, the support and primary activities of service
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RATIONALE OF THE STUDY
The change in consumer behavior has made most producers of goods and services to tailor their
products to meet the requirement of potential buyers. Thus, most organizations are concerned
about how to satisfy their customers through improved services which is tailored to meet or
expectation, there still exist some flaws in the process involved in service delivery. Rather than
take the whole process as a matter of importance, most local Airlines in India narrow down their
quality approach to few operations in other to cut cost. The emergence of new airlinesinto the
market is now changing the face of competition in the industry, as these airlines tend to adopt a
total quality management ideology. The advantage this brings to them can be viewed in terms of
increased patronage over time. If quality approach is not taken seriously by the old airlines, they
might in no time lose customers which might eventually drive them out of business. Thus, there
is the need for change in organizational culture and structure to give room for a new approach to
service delivery. The implementation of TQM can be beneficial to the old airlines when the
principles are effectively adopted, for effective implementation of TQM will increase
customersatisfaction with the service offerings. The improvement in quality can result in
Implementation of TQM further ensures that organizations change how they perform activities to
eliminate inefficiency, improve customer satisfaction and achieve the best practice. Porter noted
that constant improvement in the effectiveness of operation is essential but not anenough factor
for organization to be profitable. TQM helps in improving the quality of products and reduces the
scrap, rework and the need for buffer stock by establishing a stable production process. TQM will
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reduce the cost of production and time of production. Many other TQM practices such as
training, information system management, relationship with suppliers etc. have a positive
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PROBLEM STATEMENT
Generally, the business operating environment is volatile, it has become quite unpredictable and
manifest themselves. Today, organizations are facing high competition and only those companies
Such organizations aimatdelivering the greatest value to customers with the view that as the
operating environment changes, a more pronounced transformation of the business landscape lies
ahead. Therefore, strategy is vital to the adaptation of the changing business environment.A good
The airline industry has become very competitive as more and more companies compete to
outperform each other. Airlines in India are faced with high competition on different routes
especially those from well developed countries like America and Britain. Coupled with other
management challenges, airline companies in India have faced hard times which have seen some
of them like the Jet link close business. The competition has intensified both on local and
international routes forcing airline companies to rethink their strategies if they are to remain
competitive. Increased competition has seen theentry of low-cost carriers for the local market
such as the Jumbo Jet whichhas increased customer choice and convenience.
Low – cost carriersin the airline industryhave brought important benefits to passengers, enabling
millions of Indiancitizensas well as passengers from other countriesto travel more cheaplyand
frequently. Now there is effective and growing competition among international airports, brought
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about by route liberalization and airport privatization which has seen major European airports
Challenges such as increased incidents of terrorism world over, has seen airlines and other
aviation firms develop strategies to enhance customer safety and security to stay on top in the
uncertain business world.Changes in the political arena globally have also seen countries signing
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STAKEHOLDERS THEORY
The stakeholder theory examinesthe organization and those groups both internally and externally
and the relationship between them all. This theory looks at how the connection of these groups
Freeman (1999) gives the definition of a stakeholder as any group or individual who can affect
oris affected by the achievement of the firm’s objectives and this goes to generalize the
primary stakeholders like customers, shareholders, employees, suppliers and distributors or the
local community. They could also be secondary like the media, general public, business partners,
For employees,the organization needs to provide a conducive work environment, well elaborated
duties and responsibilitiesand better paythat recognize the employees’worth. For the society,the
organization needs to take care of the environment while for shareholders; the organization needs
to earn some wealth for them.As for the government the organization needs to conform to the
rules and regulations of the land, contributing to the government’srevenue inform of tax revenue
etc. Organizations need to establish agood relationship with the suppliers and distributors.
Friedman (2006) contributed to this theory to a great extent. According to him, organization
involves grouping of those parties who have a stake in the organization with a common purpose
to managingthese groups/parties’ needs and interests. This role of managing stakeholders is a role
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played by the managers of organizations. The role is two way meaningmanagers strive to manage
organizations for the benefit of these stakeholders to ensure they participate in decision making
process and on the other hand manage the company properly so that it survives for the good of
these stakeholders.
The stakeholder’stheory examines the role of each stakeholder and how each stakeholder views
the purpose of the organization. All the stakeholders have along – term association with the firm
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TOTAL QUALITY MANAGEMENT PRACTICES
Total Quality Managementcan be described as that approach used bybusiness firms to improve its
well, it leads to reduction in production costs, improved employee morale, improved overall
important to note that TQM is not a onetimeactivity but a continuous process.The seven
principlesof TQMare the ability to manage quality, embracing correct processes, considering
quality improvement as a continuous process, measuringquality, dealing with problem root cause
as opposed to treating symptoms, responsibility of quality involves all employees and that quality
is a long-term investment.
activitiesof an organization with the goal of ensuring reduced waste, reduced costs and an
increase in production efficiency. This study reviewed literature researcheson the six
TQMpractices. These practices are strategic planning, leadership and top management support,
customer focus, employee involvement, supplier quality management, training and development
Total quality management implementation requires cultural change in the organization. This can
only be achieved if the top management in the organization commit to the practices that will
cooperation through the entire organization. Total quality management endeavors to improve the
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of a business, the top management and the chief executive must be key pioneers in embracing
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OBJECTIVE AND AIM OF THE STUDY
1) To highlight the benefit of TQM implementation in the Air India by examining the basic
Customer satisfaction
Employee satisfaction
Operational effectiveness
The outcome of these comparison if positive, willshow the need for benchmarking by the non –
TQM airlines, in other to derive the value created by its implementation, if not then we will
assess the problems associated with the implementation of this ideology by the TQM airlines by
drawing inferences from the various interviews conducted outside the use of data gathered from
the questionnaire
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CHAPTER – 2
COMPANY PROFILE
About AIR INDIA
Air India is the flag carrier airline of India.It is owned by Air India Limited, a government-
owned enterprise, and operates a fleet of Airbus and Boeing aircraft serving 90 domestic and
international destinations. The airline has its hub at Indira Gandhi International Airport, New
Delhi, alongside several focus cities across India. Air India is the largest international carrier out
of India with an 18.6% market share.Over 60 international destinations are served by Air India
across four continents. Additionally, the carrier is the third largest domestic airline in India in
terms of passengers carried (after IndiGo and Jet Airways) with a market share of 13.5% as of
July 2017.The airline became the 27th member of Star Alliance on 11 July 2014.
The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first
single engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu
aerodrome and later continuing to Madras (currently Chennai). After World War II, it became a
public limited company and was renamed as Air India. On 21 February 1960, it took delivery of
its first Boeing 707 named Gauri Shankar and became the first Asian airline to induct a jet
aircraft in its fleet.In 2000–01, attempts were made to privatize Air India and from 2006 onwards,
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Air India also operates flights to domestic and Asian destinations through its subsidiaries
Alliance Air and Air India Express. Air India's mascot is the Maharajah (Emperor) and the logo
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CHAPTER – 3
LITERATURE REVIEW
There are different definitions and competing views of the term quality by different people and
the common element of the business definitions is that the quality ofa product or service refers to
the perception of the degree to which the product or service meets the customer's expectations.
ISO 9000: (2000) defined quality as the degree to which a set of inherent characteristics fulfill
requirements. The American Society of Quality sees quality asbeing subjective, with different
individuals having their own perception of it. To them, quality be having two meanings – the
characteristics of the product or service ability to satisfy a need or a product or service devoid of
faults. It can be defined as a state of conformance to valid requirements where valid requirements
are defined asconditions that meets the needs of customers, measurable and achievable.
Peters, (1999) defined quality as a ‘magic bullet’ which provides lower cost, higher customer
service, better products and higher margins. He also explained that ‘quality is in the eyes of the
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QUALITY MANAGEMENT
Quality management involves the formulation of strategies, setting goals and objectives, planning
and implementing the plans; and using control systems for monitoring feedback and taking
According to Juran (1988), the basic goal of quality management is the elimination of failure;
both in the concept and in the reality of products, services and processes. This does not only
mean that product, services and processes will fail in fulfillingtheir function but that their
function was not what the customer desire. Failure must be prevented in quality management and
to handle this there should be planning, organizing and controlling. Four stages of quality
management were treated by Dale et al (1994), this include inspection, quality control (QC),
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QUALITY CONTROL
Quality control is a conventional way that businesses have used to manage quality. Quality
control is concerned with checking and reviewing workthat has been done. This is mainly done
by inspection of products and services (checking to make sure that what’s being produced is
meeting the required standard) take place during and at the end of the operations process. Juran
(1988) defined quality control as the regulatory process through which we measure that actual
It is a more sophisticated management tool aims at preventing goods and services which do not
conform to basic requirements from getting to the final consumer. Quality controls are
operational techniquesand activities that are used to fulfill quality requirement (ISO 8402, 1994).
As a measure of quality, quality control however is costly when viewed in terms of tangible and
intangible variable cost. It could also result in the production of substandard goods and services
when conducted late in the process of production. Due to the problems associated with quality
control, businesses now focus on other avenues or means through which quality could be
managed effectively. The solving of a problem after a nonconformance issue has been created is
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TOTAL QUALITY MANAGEMENT (TQM)
This is the highest level of quality management. It is concerned with the management of quality
principle in all the facets of a business including customers and suppliers. Total Quality
Management (TQM) involves the application of quality management principles to all aspects of
the organization, including customers and suppliers, and their integration with the key business
organization. TQM is a principle which involves the cooperation of everyone that aids the
business process of an organization and it involves all the stake holders of an organization. ‘TQM
is defined as a philosophy embracing all activities through which the needs and expectations of
the customer and the community, and the objectives of the organization are satisfied in most
efficient and cost effective way bymaximizing the potentials of all employees in a continuing
TQM is an effective system for integrating the quality development, quality maintenance and
quality improvement efforts of various aspects of a system to enable services at most economical
level and derive full satisfaction. TQM is aimed at the satisfaction of customers’ needs in an
efficient, reliable and profitable way. It involves a radical direction through which an
organization perform her day to day operations in other to ensure that quality is put at the top of
mind of every employeeand departments in which they operate. TQM as the synthesis of the
organizational, technical and cultural elements of a company. They opined that TQM is a heart
and mind philosophy which recognizes that company culture affects behavior which in turn
affects quality
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TQM as an approachto improve competitiveness efficiently and flexibility for the whole
organization. TQM can be defined as a management system which consist of interdependent unit
namely core values, techniques such as process management, benchmarking customer focused
planning or improvement teams and tools such as control charts. TQM as a corporate culture that
employees in the organization. For an organization to be truly effective each part of it must work
properly together towards the same goal, recognizing that each person and each activity affects
and in turn is affected by each other – the methods and techniques used in TQM can be applied
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STAGES OF TQM IMPLEMENTATION
Six different levels of TQM implementation, these includes: uncommitted, drifters, tool pushers,
improvers’ award winners and world class. According to them, these stages do not necessarily
represent the stages through which organizations pass on their TQM journey. These levels
according to Dale et al are to help organization in identifying their weaknesses and proffering
1) Uncommitted: This stage represents organizations that have not started a formal
training of employees. Organizations in this stage are termed uncommitted because they
are not aware of the benefit of quality improvement and lack an appropriate quality
emphasis on return of sales and net asset employed. Other common features of this level
include:
A major concern for meeting sales target. Employees show little or no concern for quality.
Full inspection of materials is carried on incoming material and at strategic points during
Lack of communication among the various units ofproduction even between the top
2) Drifters: These are organizations that have engaged in a process of quality improvement
for up to three years and have followed the available advice and wisdom of TQM. The
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management of the organizations in this stage tend to review the performance of the firm
based on the implementation of TQM and expect immediate gains from it. These
organizations view TQM as a program rather than a process thus making the policy have a
low profile among employees. Organizations with such an approach to management are
termed drifter because they drift from one program to the other in a start stop fashion with
concepts, ideas and initiative being reborn and re-launched under different guises.
Organizations which fall within this stage usually have no plan for the deployment of
TQM philosophy throughout the organization thus limiting the implementation of TQM
to the managers while leaving the shop floor out of the implementation process.
most cases, fail to use such tools appropriately. They adopt quality management tools
such as quality cycles, quality improvement groups. These organizations often blame the
failure of TQM on the tools adopted. Organizations in this stage find it difficult to sustain
the momentum of its improvement initiatives and it is continually on the lookout for new
Companies under this category are more experienced in quality improvement when compared
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4) Improvers:Organizations in this category have engaged in a process of quality
improvement for between five and eight years and during this time made important
advances. They understand that total quality involves long term cultural change and have
recognized the importance of cultural change and the importance of quality improvement.
Organizations in this category are termed improvers because they are moving in the right
direction and have made significant progress but still have a long way to go. This is
because the implementation of TQM is dependent on a few managers to sustain the drive
5) Award Winners: These organizations are termed award winners because they have
attained a point in their TQM maturity where the kind of culture, values and trust
capabilities relationship and employee involvement has become total in nature and
encompasses the whole organization. In these types of organization every member of staff
recognizes the importance of quality and all effort is made to maintain a quality standard.
True competition based on product or service quality can only be attained when an
organization has gotten to a stage where it can compete for awards. Organizations in this
stage are believed to havemanned the process of quality improvement as the organizations
6) World class: These organizations are characterized by the total quality improvement and
business strategies to the delight of customers. The organizations that have attained this
stage are always in search ofopportunities to improve their services to satisfy customers.
It was further explained that the focus of TQM here is on enhancing competitiveness by
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influencing the perception of customers to the company through the continuous
innovation of the service offering. The impact of TQM is felt more here as it is aimed at
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MAJOR PRINCIPLES OF TQM
1) TOP MANAGEMENT COMMITMENT AND LEADERSHIP: TQM requires
effective change in organizationalculture, and this can only be made possible with the
and effectiveness, TQM must start at the top with the chief executive'. Leadership as
being critical in effecting organizational change most especially in the areas of building
effecting relationship with suppliers and others involved in the process of value delivery.
The commitment of leadership to the TQM strategy as shown in their daily disposition to
work will go a long way in motivating employees to deliver quality services that exceeds
ensure complete customer satisfaction at every stage, both internally and externally. An
need for cultural change is stressed by the role it plays in the life of an organization.
Culture influences what the executive groups attend to, how it interprets information and
in the drawing up of the strategic position of the firm as it dictates how members of staff
approach their day to day activities. Culture is said to help an organization in planning
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3) CUSTOMER FOCUS: TQM is an ideology which is focused on the satisfaction of
customer’s need. Thus, most organizations try as much as possible to meet or exceed
customer’s expectation in their daily activity and their long-term plan. TQM require
organizations to develop a customer focused operational processes and at the same time
committing the resources that position customers and meeting their expectation as an
maintain a close link with their customers in order to know their requirements and to
expectation serve to drive development of new service offering. This is since customers
Unlike what obtains in the TQM ideology, the traditional employee involvement is
narrow-minded; it is job – centered rather than process – centered. The TQM approach
involves ‘achieving broad employee interest, participation and contribution in the process
of quality management’. The concept assumes a company – wide quality culture, which
gives autonomy or a level of freedom to employees in taking decisions that affect their
job. Thus, employees are encouraged to perform function such as information processing,
problem solving and decision-making. The main aim for the total involvement of
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employee is to boost internal and external customer’s satisfaction by developing a flexible
delivery of value to customers. Customer satisfaction can be attained only through the
management involves the design into the process of production, a system of continuous
improvement. This contains regular cycles of planning, execution and evaluation. The
focus on continuous improvement will lead to the formation of formidable team whose
membership is determined by their work on the detailed knowledge of the process, and
ideology in the process of production. Training equips people with the necessary skills
business in the achievement of its aims and objectives. Through training, employees can
process of production. Training and development program should not bea onetime event
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7) TEAMWORK: A well-structured team will aid the effective production of goods and
Teamwork is a key feature of involvement. To him, teamwork aids the commitment of the
workforce to the organizational goals and objectives. It is essential to have a team made
of people with right attitudinal disposition to working in groups torealize the gains of
the proposed improvements have a way of changing the attitudes of employees that are
resistance to change.
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BENEFITS OF TQM IMPLEMENTATION
The effective implementation of TQM will increase customer satisfaction with the service
offerings. Quality enhances customer loyalty through satisfaction; this in turn can generate repeat
business and lead to the attraction of new customers through positive word of mouth. The word
of mouth communication will helpin cost reduction. The improvement in quality will result in
authority to the front-line staff. It ensures the participation of everyone in the decision-making
process through activities such as quality cycles and teamwork. The question is, does this
devolution of authority leads to employees’ satisfaction or not? Motivations theories indicate that
two major forms of motivation exist – the intrinsic and the extrinsic motivation. While some will
argue that the best form of motivation is monetary incentive, others argue for self fulfilment and
recognition.
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The motive behind the intrinsic reward is to provide the employee with some autonomy which
empowers him to take decisions that affects his job, thus making him responsible and
accountable. This is said to increase the employee’s level of job satisfaction. The implementation
of TQM ensures that every worker in the organization does his work with quality the first time,
thus improving the efficiency of operation and avoiding some cost associated with waste. This in
turn will offer more value to customers interms of price and service quality, thus making them
satisfied.
Implementation of TQM further ensures that organizations change how they perform activities to
eliminate inefficiency, improve customer satisfaction and achieve the best practice. Porter noted
that constant improvement in the effectiveness of operation is essential but not anenough factor
for organization to be profitable. TQM helps in improving the quality of products and reduces the
scrap, rework and the need for buffer stock by establishing a stable production process. He
argued that TQM will reduce the cost of production and time of production. Continuous
improvement which is a feature of TQM is said to reduce the product cycle time thus improving
productivity. Many other TQM practices such as training, information system management,
relationship with suppliers etc. have a positive impact on operational performance. The efficient
managementhandling of these practices will improve efficiency and no doubt affect the
TQM can minimize the total cost of production through ‘sole sourcing’. The cost in this case is
reduced by limiting the number of suppliers used by the firm and providing them with necessary
training and technology. The efficient functioning of an operation will then depend on how well
the suppliers meet up with the expectations of the organization. Therefore, the TQM principle
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emphasizes the totality of quality inall facets which includes the suppliers. TQM endorses the
total quality approach in creating customer satisfaction. The total quality approach creates an
satisfaction. Thus, it requires that quality be built into all the processes to be efficient in the
overall operation. The effectiveness of TQM organizations should be measured by the degree
of integration with their supplier bases because supplier quality management is a critical
component of TQM. Operational effectiveness is then a function of how well the various units of
an organization carry out their functions with quality. This study will try to access if the TQM is
responsible for the effective operation of the new local airlines in the aviation industry in India.
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TQM AND THE AIRLINE INDUSTRY
The deregulation of the airline industry in most part of the world marked the beginning of a new
realm of competition in the industry. The deregulation ensured that airlines set fares and service
levels based on the market situation. In trying to gain competitive advantage, airlines try to
outshine their competitors by providing quality services that meets or exceeds the expectation of
customers’. Thus, customer satisfaction in the airline industry is never ending as they face
numerous challenges and competition daily. This makes Quality management critical to the
competitiveness.
Airlines paying strict attention to service quality will be differentiated from others and will in the
course of doing this gain competitive advantage. Although it’s been argued that price is a major
determinant of airline choice by customers and most airline would rather compete on it than on
service quality. However, not managing quality will mean no added and assuring value to the
airlines.
The use of a strategic approach to quality management by airlines will therefore improve their
competitiveness. This approach ensures that airlines remain customer focused. Committed
leadership to the strategy ensures that the airline offerings are continually updated to meet or
exceeds customers’ requirements. The main cause of poor performance by service firms is that
they do not know what is expected from them by customers. Airlines need to consistently
monitor the perception of customers to their services to know where the gap lies between the
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offered service and expectations of customers. Acceptable level of customer satisfaction is
attained when passenger’s expectation has been met or exceeded. To ensure customer
satisfaction, everybody in the organization including suppliers will need to have the customers at
TQM enables innovativeness as it empowers employees to take decisions that affect their job. For
the airlines to be innovative in its offerings, it requires a flexible structure which permits
cooperation between different functions. It is noted that intensive cooperation, empowerment and
open communication facilitate innovation. Three major reasons can be identified as the basis for
innovation:
These three reasons are interrelated as one is said to lead to the other. The satisfaction of
customers will lead to increased patronage which will eventually lead the company in meeting its
Our view of the airline industry as a network of activities involving different operating units
some of which are outsourced due to regulations in the industry and also due to the need to
benefit from the expertise of others who are specialized in such field so as to derive economies of
scale. The implementation of TQM involves the buying in of these different units involved in the
process of service delivery into the ideology and practices of quality management, which should
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be championed by the leadership of the airlines. That is, the support and primary activities of
This illustration below (Figure) depicts a typical organizational work process with different units
having its own function, where each function affects and in turn is affected by the output of the
other. Thus, the efficient functioning of the whole process will create an added value to the
organization. This can only be attained if quality iswell managed at the different operational
activity.
Looking at the critical success factors in the Table below, the issues of quality management is
well enshrined into the various factors, as it takes a management which is customer driven to put
these in place. As capitalization and improved funding on its own without the change in ideology
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towards managing these resources will not guarantee success. What is required here is the buying
in of all stake holders into an ideology which will see that resources are efficiently deployed and
utilized towards achieving its aim of achieving of satisfying customers and all the stake holders.
Enhanced Performance
emergencies Well-Motivated
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CHAPTER - 4
RESEARCH METHODOLOGY
RESEARCH HYPOTHESIS
Hypothesis 1: TQM Airlines will have a higher degreeof employees’ satisfaction than NON-
TQM airlines.
airlines.
H1: There is a significant difference in employee satisfaction between TQM airlines and
non-TQM airlines.
Hypothesis 2: Airlines adopting TQM approach will have greater customer satisfaction than that
H0: There is no difference in customer satisfaction in TQM airlines and non – TQM
airlines.
H1: There is a significant difference in customer satisfaction between the TQM Airlines
Hypothesis 3: Airlines adopting TQM approach will havegreater operational performance than
H0: There are no difference in the airline operational performance of TQM airlines and
H1: TQM airlines are more effective in their operation than non-TQM airlines
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RESEARCH QUESTIONS
In this report, we will intend toanswer the following questions:
3) What are the problems possibly faced in the implementation of TQM in the Air India?
6) What are the basic principles that the Air India can adopt to implement TQM?
RESEARCH DESIGN
Research design can be described as ‘a logical model of proof that allows the researcher to draw
inferences concerning causal relations among the variables under investigation’. According to
Sekaran (2003), the various issues involved in the research design concern the purpose of the
study, the type of investigation, the type of the sample, which will be used, the methods by which
the required data will be collected, as well as the process that will be followed for the analysis.
Induction and deduction are two ways in drawing conclusion to a research. According to Sekaran
generalization of a known fact, while induction on the other hand, is a process where we observe
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METHOD OF DATA COLLECTION
Data collection is simply the ways information is gathered. Secondary Data and primary data
PRIMARY DATA
Primary data is the information gathered directly from the researcher, when secondary data is not
available or is unable to contribute meeting research objectives. The collection of primary data
will involve the use of research instruments, such as questionnaires and interview schedules that
For the purposes of this research, primary data will be collected by questionnaire and interviews.
SECONDARY DATA
Secondary data is information collected by othersfor purposes, which can be different than those
of the researcher. It is a synthesis of published and unpublished documents related to the research
The collection of secondary data has both advantages and disadvantages, one of the foremost
advantages of using secondary data is that it helps the researcher formulate and understand better
the research problem, broadening at the same time the base for scientific conclusions to be drawn.
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Nevertheless, it should be taken under consideration that other researchers, organization or
government departments for studies with different objectives and purposes collected the data;
For the purpose of this study, the secondary data will be collected via textbooks, academic
articles and journals related to the implementation of TQM. Also, several online resources will be
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QUESTIONNAIRE
Questionnaire is a research instrument consisting of series of questions and other prompts for the
respondents’ records their answers, usually within rather closely defined alternatives’.
A questionnaire will be structured for this research and will be administered to the front-line
staffs of the Air India; which will include the cabin crew, ticketing staff, and customer service
agents, operations managers etc. The choice of the questionnaire as one of the means of gathering
data is borne out of the fact that it is cheap, do not require as much effort from the questioner as
verbal or telephone surveys, not time consuming and often have standardized answers thatmake it
simple to compile data. It allows the respondents to supply answers that are confidential to them.
These questionnaires will be handed directly to the respondents which will give us the privilege
The questionnaire will be consisting of four major parts, which will focus on the areas of interest
of the research.
The first part will be related to the commitment of management to the implementation of
TQM.
The second part will be related to customers satisfaction to the services rendered.
The third part will be related toemployee’s satisfaction,the extent to which employees are
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The fourth and final part will be related to factors responsible for effective or
ineffectiveness operation.
The questionnaire will consist of closed ended and open-ended questions. Open-ended
questions are questions to which there is not one definite answer. Open-ended questions may
be a good way to break the ice with a survey, giving respondents an opportunity to answer in
their own words. The responses to open-ended questions can be very useful, often yielding
quotable material, and the drawback to open-ended questions is that the responses are more
Closed-ended questions have a finite set of answers from which the respondent chooses. One
of the choices may be "Other." It is a good idea to allow respondents to write in an optional
response if they choose "Other." The benefit of closed-ended questions is that they are easy to
standardize, and data gathered from closed-ended questions lend themselves to statistical
analysis.
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SAMPLE DESIGN
Sampling is divided into two main categories: probability and non-probability and these will
be used in this research. In probability sampling, the elements of the population have a
definite chance, but not necessarily equal, of being included to the sample. On the contrary, in
non-probability sampling, the odds that anelement will be included in the sample are
unknown.
The non-probability sampling technique will be adopted using the quota sampling. This is
since the staffs that deal with customers directly in an organization will be in the best position
in providing the information required for this research. However, the use of this method will
be deficient in that the result cannot be generalized totally but it is believed to give us the
required information for the research and will also offer the advantage of saving costs and
time.
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POPULATION AND SAMPLE SIZE
The population of study will be drawn out from Air India Operations department.
100 questionnaires will be distributed in this survey. These questionnaires will be distributed
among employees who deal directly with customers on daily basis. The choice for employees
with customer facing role is borne out of the fact that they are believed to know the customers
more since they have daily interactions with them and are supposed to know what the
The operations manager will be interviewed also give insight into the operational activities of
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DATA ANALYSIS & INTERPRETATION
Classification & tabulation of the raw data collected through questionnaire will be converted
to useful information by organizing and compiling the data obtained from responses to the
DATA PRESENTATION
The data would be presented by way of suitable charts and diagrams
STATISTICAL TOOLS
Suitable statistical tools shall be used to carry out analysis and prepare graphs, pie- charts etc.
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LIMITATIONS OF THE STUDY
The research will be limited to front line staffs of the airline due to time limit and
The front-line staffs do not represent the perception of the companies; thus, the overview
Also, the sampling techniques as a result of time and the cost involved, a non-probability
sample will be adopted to get the information quicker from the companies.
The inability to show the financial impact of TQM implementation also limited this study,
in that organizations wanting to adopt the TQM ideology are mostly concerned about the
Some of the sampling and non-sampling errors may creep into the study.
The nonuse of financial data will be as a result of firms being reluctant to share such
of how to be more cost effective within TQM implementation framework. This study will serve
the purpose of TQM implementation and performance in other Airlines Industry as well Non –
Airlines Industry.
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CHAPTER – 5
Table 1
Graph 1
Gender
38%
Male
62%
Female
the Air India is shown in Figure 1. The percentage of the respondents based on gender is
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2. Department
Table 2
Graph 2
Department
23%
42%
Ticketing and Reservation
Customer service agent
35% Cabin Crew
of the airlines, namely ticketing and reservation, customer service and cabin crew. Figure 2 is
used to illustrate the representation of each section for the Air India. The ticketing and
reservation section had 42 respondents represents 42% of the population. The customer service
agents had 35respondents, represent 35% of the total population. Finally, for the cabin crew
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3. Have you heard of TQM?
Table 3
Yes 43 43%
No 57 57%
Graph 3
43%
57% Yes
No
Interpretation: The knowledge of TQM is lesser amongst employee of Air India. Only 43%
respondents of Air India are conversant with the principles and the implementation of TQM
whereas 57% has no knowledge about TQM and its related principles.
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4. Are you satisfied with the authority given to you by your employer?
Table 4
Authority
Satisfied 21 21%
Indifferent 19 19%
Unsatisfied 48 48%
Extremely unsatisfied 2 2%
Graph 4
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Interpretation: From the distributions in Tables 4, it is observed that most respondents from
are not satisfied with the authority given to them to do their job. Only 31% employees have
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5. Are you satisfied with the Regular Training provided by Air India?
Table 5
Regular Training
Yes 83 83%
No 17 17%
Graph 5
17%
Yes
No
83%
Interpretation: From the data analysis we can see that 83% respondents are satisfied with the
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6. Do you satisfied with the management encourage the teamwork effort?
Table 6
Satisfied 56 56%
Indifferent 15 15%
Unsatisfied 5 5%
Extremely unsatisfied 8 8%
Graph 6
Interpretation: Overall 72% employees are satisfied that management encourages the teamwork
effort whereas 15% response was neutral and rest 13% were dissatisfied.
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7. How are you satisfied that employees are involved in decision - making?
Table 7
Satisfied 20 20%
Indifferent 18 18%
Unsatisfied 28 28%
Extremely unsatisfied 26 26%
Graph 7
Interpretation: only 28% employees are satisfied that about their involvement in decision –
making. Whereas large number of percentages i.e. 54% was dissatisfied that management never
asked the involvement of employee in decision - making process. Hence, Air India needs to
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8. Do you think Air India provide you Job flexibility?
Table 8
flexibility
Yes 86 86%
No 14 14%
Graph 8
14%
Yes
No
86%
Interpretation: 86% employees are satisfied with the job flexibility at Air India, which is a good
sign for the company too because if the employees are happy company can achieve its goals
easily.
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9. Do you think company provides monetary and non – monetary benefits to boost
Table 9
Yes 68 68%
No 22 22%
Graph 9
Motivation level
22%
Yes
No
68%
Interpretation: 68% employees are agreeing that company provides monetary and non –
monetary benefits to boost employee motivation level whereas 22% are not satisfied with the
motivational benefits.
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10. How satisfied are your customers from the complaint handling process of Air
India?
Table 10
complaint handling
process
Extremely Satisfied 9 9%
Satisfied 33 33%
Indifferent 38 38%
Unsatisfied 15 15%
Extremely unsatisfied 5 5%
Graph 10
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Interpretation: Overall 42% employees are satisfied with the level of complaint handling
process in Air India whereas 38% didn’t said anything followed by 20% who are not at all
satisfied with the level of complaint handling process prevalent in the organization.
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11. Do you think defection of customer is a result of poor service?
Table 11
Yes 68 68%
No 8 8%
Graph 11
26%
Yes
8%
No
68%
Can’t say
Interpretation: 68% employees are agreeing that defection of customer is a result of poor
service followed by 26% who said they can’t say which factor is responsible for customer
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12. Do you think your organization respond quickly to customer complaint?
Table 12
complaint
Yes 88 88%
No 5 5%
Can’t say 7 7%
Graph 12
Yes
No
Can’t say
88%
Interpretation: 88% respondents are agreeing that organization respond quickly to customer
complaint followed by 5% who disagree with this point and 7% said they can’t say about it.
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13. Do your company honors and commitment and guarantee to all customers?
Table 13
guarantee to all
customers
Yes 79 79%
No 3 3%
Graph 13
18%
3%
Yes
No
79% Can’t say
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Interpretation:A very large percentage i.e. 79% respondents agree that company honors and
commitment and guarantee to all customers followed by 3% who were disagree and 18% said
they can’t say about that company honors and commitment and guarantee to all customers.
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14. Does the accessibility of services to customers’ aids the efficiency in operation?
Table 14
Yes 86 86%
No 2 2%
Graph 14
Efficiency in operation
2% 12%
Yes
No
Can’t say
86%
Interpretation: 86% respondents were agreeing that accessibility of services to customers’ aids
the efficiency in operation followed by 2% who were disagree whereas 12% has neutral response.
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15. Does Air Indiakeep to its flight schedule?
Table 15
Yes 67 67%
No 8 8%
Graph 15
Flight schedule
25%
Yes
8%
No
67%
Can’t say
Interpretation: 67% respondents agree that Air India keep to its flight schedule followed by 8%
said they are not agreeing with this and 25% said they have no idea about it. So, overall company
needs to check the factors for flight schedule delay if happens frequently.
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16. Do you think Flight delays and cancellation are due to controllable factors?
Table 16
No 36 36%
Graph 16
23%
41%
Yes
No
36% Can’t say
Interpretation: Very few respondents (23%) agree that flight delays and cancellation are due to
the controllable factors whereas 36% denied with this fact followed by 41% who said they can’t
say about these as they have no idea that which factors is responsible for the flight delays and
cancellation.
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17. Does your supplier’s operation aid the efficiency in your operations?
Table 17
Yes 23 23%
No 36 36%
Graph 17
Flight schedule
23%
41%
Yes
No
Interpretation: 23% respondents are agreeing that supplier’s operation aid the efficiency in our
operations whereas 36% said No and 41% said they can’t say about it.
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CHAPTER – 6
due to the benefit derived from it in terms of customer satisfaction, operational effectiveness and
employee satisfaction. The Air India must take quality issues rather seriously as it is a major
determinant of their continuous existence. In the airlines industry, the main essence of TQM is to
provide services which will make customers satisfied, this in turn bring about repeat purchase
thus increasing sales and profitability of the organization. The findings of this report are there by
discussed first based on individual hypothesis. The first hypothesis overall result first states that
Air India have a higher degree of employee satisfaction. Employee satisfaction in the Air India
could be seen to have been derived from the combination of both intrinsic and extrinsic factors,
Intrinsic factors such as involvement in decision making regular training and devolvement of
authority. The principle of total involvement, with the aim of meeting customer’s need through
delegation of authority and empowerment of employees have contributed greatly to the success of
these organizations in their quest to make customers satisfied. This report to an extent shows that
the satisfaction of customers is dependent on how well the employees are satisfied. This has a
psychological effect on employees in terms of motivation, as it limits them from taking necessary
action as at when due and removes the feeling of intrinsic reward as employees do not feel
responsible and accountable, thus reducing their satisfaction level. Motivation for employees is
basically is based on the recognition of individual effort, which appears to be higher when
compared to the Air India. The implication of this is to encourage teamwork which is a major
motivator of employees in the quest to deliver quality service in their daily operations and to
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prevent internal competition amongst employee. he objective behind the implementation of
TQM is to create an environment which is focused on fulfilling the desires of customers while
meeting objectives of the company in terms of profitability. In the creation of this environment,
the organization becomes sensitive to changes in customers desires and tailor her product
offerings to meet or exceed customers need. Customers are only willing to use a service again if
The idea behind the implementation of TQM is to ensure that adequate attention is given to
quality to give room for an error free transactional process and less room for customer complaints
while maximizing customer satisfaction. It is proven that satisfied customers are more willing to
recommend quality service to others asshown in this report. For an organization to be effective in
terms of operations there is the need for every member of the organization to be involved and
committed to this objective as the essence is to have a functional work environment which is
efficient and focused on meeting customers’ demands. As it expected that the commitment of
management and employees will aid the efficiency in operations of the organization.
From the interviews conducted, it was noted that, the airlines attributed the problems of delays to
the suppliers and poor state of infrastructure at the airports. Among the reasons cited are
consistent break down of the conveyor belts, poor airport traffic control and other exigencies
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SUGGESTIONS
Quality issues must be taken seriously by any organizations in order to remain competitive, as the
maintenance of high and consistency of high-quality service will ensure that customers continue
It must be noted that the gains of a total quality culture far outweigh the cost of implementation
as seen expressed in this research and the competitive nature of the industry calls for the
organization to refocus its strategies to suit the market demands. In this case, it would require an
ideology which supports this strategic thinking to meet up with the challenges.
In summary, meeting up to the challenge posed by competition in the industry today, will require
a change in organization culture by imbibing the TQM ideology and its principles, this will
ensure that the organizations are focused on satisfying their customers and not only concerned
about profits. For the TQM airlines, the strategic approach to management has paid off, but they
have not gotten to the height of the world class airlines as theystill experience some amount of
complaints from customers. These shows there are some lapses in the implementation process of
TQM. This is expected as these airlines are still within two to three years of TQM
implementation. There is the need for continuous improvement, thus areas which have accounted
for those complaints should be worked upon and proper procedures which will minimize these
complaints if not wiped out completely should be put in place. Even as they have the greater
market share, the competition is not resting as there is the need for them to continue to
benchmark their services with the world class airlines and update their services regularly.
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CHAPTER – 7
CONCLUSION
The findings of this research attest to the benefits that accrue from the implementation of TQM. It
has shown that it is a strategic tool for an organization to employ in the quest to remain
competitive. If adequately deployed, the principle brings about added value to an organization in
profitability. The finding also revealed that the relentless pursuit of improvement in service
delivery bring about added value to customers by making the organization focused on satisfying
customer’s needs, while teamwork and training empowers employees for the continuous
improvement drive of the organization. The implication of managing every facet of the
organization was revealed, as each production unit is seen to affect and in turn affected by others.
That is, a dysfunction in the process of service delivery has an overall effect on the total
production process, thus showing the need for a holistic approach which involves every
functional area to be managed effectively. The implication of not managing quality effectively
was shown in the case on the non-TQMairlines, which resulted in inefficiency and loss of
patronage due to dissatisfaction of customers. The importance ofinvolving the suppliers in the
whole value chain was also highlighted, as the effectiveness of an operation depends on how well
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CHAPTER – 8
BIBLIOGRAPHY &REFERENCES
i. Alamdari, F. (1999), ‘Airline In-flight Entertainment: The Passengers’ Perspective’,
ii. Andrle, J. (1994), ‘Total Quality Management in Public Transportation’, Research Result
Digest, 3, pp 1-33
iii. Asher, M. (1996), ‘Managing Quality in the service sector’, Kogan Page, London
vi. Cooper, M. and Ellram, L. (1993), ‘Characteristics of Supply Chain Management and the
viii. Dale B. G., and Lascelles D. M., (1997), ‘Total quality management adoption:revisiting
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ix. Dale, B. G., Boaden, R. J., and Lascelles, D. M., (1994), ‘Levels of Total Quality
Management Adoption’ Managing Qualityedited by Dale, B.G.), New York, Prentice Hall
xi. Okpere, E., (1990), ‘The National Airline Planning, Management and Development’, A
CHAPTER – 9
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ANNEXURE
QUESTIONNAIRE
Name: Designation:
1. Gender
o Male
o Female
2. Department
o Cabin Crew
o Yes
o No
4. Are you satisfied with the authority given to you by your employer?
o Extremely Satisfied
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o Satisfied
o Indifferent
o Unsatisfied
o Extremely Unsatisfied
5. Are you satisfied with the Regular Training provided by Air India?
o Yes
o No
o Extremely Satisfied
o Satisfied
o Indifferent
o Unsatisfied
o Extremely Unsatisfied
7. How are you satisfied that employees are involved in decision - making?
o Extremely Satisfied
o Satisfied
o Indifferent
o Unsatisfied
o Extremely Unsatisfied
o Yes
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o No
9. Do you think company provides monetary and non – monetary benefits to boost
o Yes
o No
10. How satisfied are your customers from the complaint handling process of Air
India?
o Extremely Satisfied
o Satisfied
o Indifferent
o Unsatisfied
o Extremely Unsatisfied
o Yes
o No
o Can’t Say
o Yes
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o No
o Can’t Say
13. Do your company honors and commitment and guarantee to all customers?
o Yes
o No
o Can’t Say
14. Does the accessibility of services to customers’ aids the efficiency in operation?
o Yes
o No
o Can’t Say
o Yes
o No
o Can’t Say
16. Do you think Flight delays and cancellation are due to controllable factors?
o Yes
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o No
o Can’t Say
17. Does your supplier’s operation aid the efficiency in your operations?
o Yes
o No
o Can’t Say
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